Wacker Predicts Record Sales in 2011 as It Invests $1.3 Billion

Wacker Chemie AG (WCH), the German maker
of silicon wafers for semiconductors, forecast record sales and
said it plans to invest about 950 million euros ($1.3 billion)
this year.

Revenue in the first two months “clearly” increased from
the year-earlier period and if current trends continue, sales in
2011 would exceed 5 billion euros, the Munich-based company said
in a statement today. That compares with 4.75 billion euros last
year.

Wacker Chemie is budgeting for the strongest growth coming
from Asia markets. Plans to expand its Siltronic division
coincide with a potential gain from the aftermath of the
earthquake in Japan that has depleted production of polysilicon,
a material used in the solar and semiconductor industries.

“Wacker might be one of a few chemical companies with
positive spill-over effects from Japan,” said Peter Spengler,
an analyst at DZ Bank. “The net effects for Siltronic are hard
to calculate since not only Japanese producers are out of
business but clients as well.”

Global supply of lithium-ion batteries, substrates for
chips and power-supply capacitors may be the worst-hit
technology industries following last week’s earthquake in Japan,
Daiwa Securities Group Inc. said.

Japan makes almost 40 percent of the world’s electronics
and audio-visual components, according to Daiwa. Production has
been suspended at some factories in northern Japan because of
the damage caused by the 9.0 magnitude quake and ensuing
tsunami. It could take one to three months for output to recover
fully, the Daiwa report said.

Wacker, which is expanding capacity at its Burghausen,
Germany facility, reported earnings before interest, taxes,
depreciation and amortization almost doubled to 1.19 billion
euros last year. Shares of the company declined 0.4 percent to
146.25 euros as of 9:03 a.m. in Frankfurt.